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Libya Turns Oil Rally From Nuisance To Threat For World Economy

By

Sarah Kent

March 9, 2011 12:24 p.m. ET

LONDON—The loss of Libya's supplies has transformed the oil rally, previously seen as a mild obstacle, into a potent threat to the global economy.

Brent oil futures have shot up nearly $15 in just three weeks, ever since antigovernment protests in Libya first posed a threat to oil exports. Libya's production has dropped by about one million barrels, and the market is bracing for the possibility of similar disruptions elsewhere in the...